Governor’s Minimum Wage Decision Toys with the Lives of New Jersey’s Poorest Workers

January 28th, 2013  |  by  |  Published in NJPP Blog: As a Matter of Fact ..., Press Releases  |  4 Comments

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FOR IMMEDIATE RELEASE: JANUARY 28, 2013

Gov. Chris Christie today conditionally vetoed A2162, which would have increased New Jersey’s minimum wage from $7.25 to $8.50 per hour on March 1 and adjusted the wage annually to correspond with the Consumer Price Index. In sending the bill back to legislators, the governor is instead asking for an increase to $8.25 per hour over three years. And he is also stripping out the inflation adjustments, a key element of the wage increase.

“Over 300,000 New Jerseyans — many of them working full time — have been dealt a cruel blow by the governor’s conditional veto of the minimum wage increase. Those working 40 hours each week and every week of the year would see their incomes rise from $15,080 to $15,600 a year in 2013,” says New Jersey Policy Perspective president Gordon MacInnes. “The governor’s conditional veto proclaims that workers at the bottom of the wage scale can get by on no more than a 3 percent raise for the time being. What is worse than the paltry increase in the minimum wage is the elimination of the inflation adjuster going forward. The last increase to $7.25 an hour in 2005 now purchases $6.17 worth of necessities – a 15 percent pay cut. In fact, the first year increase proposed by the governor of 25 cents will be erased by inflation by the time the third year kicks in its 25 cents.”

The governor’s conditional veto also calls for a restoration of the state Earned Income Tax Credit to the level it was before the governor cut it in 2010. While this is a welcomed gesture, the restored EITC benefits would not kick in for too long for the hard-working New Jerseyans who have suffered under the governor’s only tax hike.

“Making those who are eligible for the EITC restoration wait until April 2015 before seeing any benefits ignores their plight, particularly since they were the only Jerseyans to be handed a tax increase in 2010,” MacInnes says. “This again shows little appreciation for the desperate struggles of New Jersey’s poorest workers to survive in this high-cost state.”

Here are the facts. The bill conditionally vetoed today by the governor would have provided a crucial boost to New Jersey’s low-wage workers and to its ailing economy.

It would have immediately stimulated New Jersey’s economy

• Wages would have increased by $439 million in the first year
• Overall economic activity would increase by $278 million in the first year
• The equivalent of 2,420 new full time jobs would be created

It would increase wages to many New Jerseyans

• 537,000 people would have received an increase in wages: 307,000 New Jerseyans making between $7.25 and $8.50 per hour would’ve seen an immediate raise, and 230,000 New Jerseyans making between $8.50 and $9.75 per hour would’ve seen a raise as pay scales were adjusted upwards.

Many families with children would benefit

• It would have benefited 127,245 parents
• 279,815 children have at least one parent that would have be affected

Most potential beneficiaries are educated but can’t find a higher paying job

• 76% have at least a high school diploma
• 39% have some college or a college degree

These low-wage workers are a diverse group

• 46% are White, 13% are Black and 34% are Hispanic
• 56% are women and 44% are men

Most of these workers are adults, not teenagers

• 85% are 20 years old or older

Many are working full time

• 78% are working either full time (35+ hours a week) or mid time (20-34 hours a week). Only 21% are working part time (19 or fewer hours a week)


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Responses

  1. skip3house says:

    January 29th, 2013at 6:55 AM(#)

    Republicans have ‘Principles’, you know. Just Brotherhood is not among them.

  2. Michael says:

    January 30th, 2013at 7:42 PM(#)

    Gross…Another Reb at his best….He needs Mrs Obama Health Plan….horrible example of Health…

  3. Gary says:

    April 3rd, 2013at 5:09 AM(#)

    Govenor, you are missing the boat here! People cannot survive on these low low wages. Look at your own grocery bill or gasoline fillup and then think? Hmm how the hell could I survive on a minimum wage job in NJ? Could I feed my kids? Pay a mortgage? Pay utilities? Gov? come on brother, it’s time to throw your constituants a little bone here. We are all tired
    of working so hard and barely sqeaking by. Wake up and smell
    the coffee. Your people are suffering due to your policies.
    You can do something. Make living in NJ a positive thing like
    it used to be. Thanks, Gary

  4. Denise ader says:

    June 14th, 2013at 10:24 AM(#)

    Of curse the Govener would veto the bill to raise minume wage because he make more money then the people fighting for our country he doesn’t care if the people in the state suffer he is the worst Govener we have had and he doesn’t care about anything but what fast food ace he will eat at next he should be pushing for company’s to pay the people who bust their buts for them to be paid what they are worth . He doesn’t care if People can have a home or food because although they work they stl can’t afford to live because they do r get paid enough the president should cut his salary to minume wage see how he limes it

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